Net Loss Per Share
We compute net loss per share of Class A and Class B common stock using the two-class method. Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of each class of the Company’s common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of the Company’s common stock, including those presented in the table below, to the extent dilutive. Basic and diluted net loss per share were the same for each period presented as the inclusion of all potential shares of the Company’s common stock outstanding would have been anti-dilutive.
As the Company uses the two-class method required for companies with multiple classes of common stock, the following table presents the calculation of basic and diluted net loss per share for each class of the Company’s common stock outstanding (in thousands, except share and per share amounts):
Year ended December 31, 2025
Class AClass BTotal
Common Stock
Numerator:   
Allocation of undistributed earnings$(68,823)$(8,241)$(77,064)
Numerator for basic and diluted net loss per share – loss available to common stockholders$(68,823)$(8,241)$(77,064)
Denominator:  
Weighted-average common shares outstanding220,697,42826,426,937247,124,365
Denominator for basic and diluted net loss per share – weighted-average common stock220,697,42826,426,937247,124,365
Basic and diluted net loss per share$(0.31)$(0.31)$(0.31)
Year ended December 31, 2024
Class AClass BTotal
Common Stock
Numerator:   
Allocation of undistributed earnings$(63,442)$(9,050)$(72,492)
Numerator for basic and diluted net loss per share – loss available to common stockholders$(63,442)$(9,050)$(72,492)
Denominator:  
Weighted-average common shares outstanding185,255,82326,426,937211,682,760
Denominator for basic and diluted net loss per share – weighted-average common stock185,255,82326,426,937211,682,760
Basic and diluted net loss per share$(0.34)$(0.34)$(0.34)
Year ended December 31, 2023
Class A Class BTotal
Common Stock
Numerator:   
Allocation of undistributed earnings$(116,497)$(17,203)$(133,700)
Numerator for basic and diluted net loss per share – loss available to common stockholders$(116,497)$(17,203)$(133,700)
Denominator:  
Weighted-average common shares outstanding178,958,60726,426,937205,385,544
Denominator for basic and diluted net loss per share – weighted-average common stock178,958,60726,426,937205,385,544
Basic and diluted net loss per share$(0.65)$(0.65)$(0.65)
For the periods presented above, the net loss per share amounts are the same for Class A and Class B common stock because the holders of each class are entitled to equal per-share dividends or distributions in liquidation in accordance with the Company’s certificate of incorporation, as amended and restated. The undistributed earnings for each year are allocated based on the contractual participation rights of the Class A and Class B common stock as if the earnings for the year had been distributed. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis.
Anti-dilutive common equivalent shares were as follows:
December 31,
202520242023
Outstanding options to purchase common stock5,551,2276,560,7367,439,187
Outstanding restricted stock units21,538,56321,250,23015,569,983
Outstanding employee stock purchase plan options
1,200,5371,948,409
Outstanding warrants20,652,69020,652,69020,652,690
Total anti-dilutive common equivalent shares48,943,01750,412,06543,661,860

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Feb 28, 2025
2023Mar 4, 2024
2021Feb 28, 2022

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.